35298 Federal Register / Vol. 63, No. 124 / Monday, June 29, 1998 / Notices

1 15 U.S.C. 78s(a).

2Letter from Stephen K. Lynner, Delta Clearing

Corp. (June 11, 1998).

3 15 U.S.C. 78q–1 and 78s(a).

4 17 CFR 240.17Ab2–1(c).

5Securities Exchange Act Release No. 27611

(January 12, 1990), 55 FR 1890. Prior to a 1996

name change, DCC was named Delta Government

Options Corp.

6Securities Exchange Act Release Nos. 38869

(July 24, 1997) 62 FR 40871 (extension until July

31, 1998); 31856 (February 11, 1993), 58 FR 9005

(extension until January 12, 1995); 35198 (January

6, 1995), 60 FR 3286 (extension until January 31,

1997); and 38224 (January 31, 1997), 62 FR 5869

(extension until July 31, 1997).

7Supra note 6.

Additional Information or Comments

Copies of the form and supporting

documents can be obtained from Chuck

Mierzwa, the agency clearance officer

(312–751–3363). Comments regarding

the information collection should be

addressed to Ronald J. Hodapp, Railroad

Retirement Board, 844 North Rush

Street, Chicago, Illinois 60611–2092 and

the OMB reviewer, Laura Oliven (202–

395–7316), Office of Management and

Budget, Room 10230, New Executive

Office Building, Washington, DC 20503.

Chuck Mierzwa,

Clearance Officer.

[FR Doc. 98–17230 Filed 6–26–98; 8:45 am]

BILLING CODE 7905–01–P

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Proposed Collection; Comment

Request

Upon Written Request, Copies

Available From: Securities and

Exchange Commission, Office of Filings

and Information Services, Washington,

DC 20549.

Extension: Rule 17a–5, Form X–17A–

5, SEC File No. 270–155; OMB Control

No. 3235–0123, Rule 17a–5(c), SEC File

No. 270–199, OMB Control No. 3235–

0199; Rule 17a–7, SEC File No. 270–

147, OMB Control No. 3235–0131.

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) is soliciting comments

on the collection of information

summarized below. The Commission

plans to submit these existing

collections of information to the Office

of Management and Budget for

extension and approval.

Rule 17a–5 under the Securities

Exchange Act of 1934 (‘‘Exchange Act’’)

(‘‘Act’’) is the basic reporting rule for

brokers and dealers, and Form X–17A–

5, the Financial and Operational

Combined Uniform Single Report, is the

basic document for reporting the

financial and operational condition of

securities brokers and dealers.

The staff estimates that approximately

7,765 respondents respond to this

collection of information 39,895 times

annually, with a total burden of 12

hours for each response, based upon

past submissions. The staff estimates

that the average number of hours

necessary to comply with the

requirements of Rule 17a–5 is 478,740

hours. The average cost per hour is

$100. Therefore, the total cost of

compliance for the respondents is

$47,874,000.

Rule 17a–5(c) under the Exchange Act

requires certain brokers and dealers to

provide statements of financial

condition to their customers. It is

estimated that approximately 750 broker

and dealer respondents incur an average

burden of 294,444 hours per year to

comply with this rule.

Rule 17a–7 under the Exchange Act

requires non-resident brokers or dealers

to maintain in the United States

complete and current copies of books

and records required to be maintained

under any rule adopted under the Act.

Alternatively, Rule 17a–7 provides that

the non-resident brokers or dealers may

sign a written undertaking to furnish the

requisite books and records to the

Commission upon demand.

There are approximately 86 nonresident brokers and dealers. Based on

the Commission’s experience in this

area, it is estimated that the average

amount of time necessary to preserve

the books and records in the United

States as required by Rule 17a–7 is one

hour per year. Accordingly, the total

burden is 86 hours annually.

Written comments are invited on: (a)

whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information shall have practical utility;

(b) the accuracy of the agency’s estimate

of the burden of the proposed collection

of information; (c) ways to enhance the

quality, utility, and clarity of the

information to be collected; and (d)

ways to minimize the burden of the

collection of information on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

Consideration will be given to

comments and suggestions submitted in

writing within 60 days of this

publication.

Direct your written comments to

Michael E. Bartell, Associate Executive

Director, Office of Information

Technology, Securities and Exchange

Commission, 450 5th Street, NW

Washington, DC 20549.

Dated: June 22, 1998.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–17235 Filed 6–26–98; 8:45 am]

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[Release 34–40112; File No. 600–24]

Self-Regulatory Organizations; Delta

Clearing Corp.; Notice of Filing and

Order Approving a Request for

Extension of Temporary Registration

as a Clearing Agency

June 23, 1998.

Notice is hereby given that on June

12, 1998, Delta Clearing Corp. (‘‘DCC’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) an

application pursuant to Section 19(a) of

the Securities Exchange Act of 1934

(‘‘Act’’) 1 to extend DCC’s temporary

registration as a clearing agency.2 The

Commission is publishing this notice

and order to solicit comments from

interested persons and to extend DCC’s

temporary registration as a clearing

agency through July 31, 1999.

On January 12, 1990, pursuant to

Sections 17A and 19(a) of the Act 3 and

Rule 17Ab2–1(c) thereunder,4 the

Commission granted DCC’s application

for registration as a clearing agency on

a temporary basis for a period of thirtysix months.5 Since that time, the

Commission has extended DCC’s

temporary registration through July 31,

1998.6 DCC now requests that the

Commission grant an extension of DCC’s

temporary registration as a clearing

agency, subject to the same terms and

conditions expressed in previous orders

granting and extending DCC’s temporary

registration,7 for a period of twelve

months or for such longer period as the

Commission deems appropriate.

One of the primary reasons for DCC’s

registration as a clearing agency was to

enable it to provide for the safe and

efficient clearance and settlement of

transactions involving the over-thecounter trading of options on U.S.

Treasury securities. Since that time, the

Commission has approved DCC’s

request to provide clearance and

settlement services for repurchase

agreement transactions involving U.S.
Federal Register / Vol. 63, No. 124 / Monday, June 29, 1998 / Notices 35299

8Securities Exchange Act Release No. 36367

(October 13, 1995), 60 FR 54095.

9 15 U.S.C. 78q–1(b)(3)(C).

10 15 U.S.C. 78q–1(b).

11 15 U.S.C. 78q–1(b)(3).

12 17 CFR 200.30–3(a)(16).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3Letter from Dennis C. Vacco, Attorney General

of the State of New York (‘‘Attorney General’’), to

Jonathan G. Katz, Secretary, Commission, dated

December 17, 1997 (‘‘Attorney General Letter’’);

Gilbert F. Casellas, Chairman, U.S. Equal

Employment Opportunity Commission (‘‘EEOC’’),

to Secretary, Commission, (‘‘EEOC Letter’’); Jeffrey

L. Liddle, Liddle & Robinson, L.L.P., to Secretary,

Commission, dated January 2, 1998 (‘‘Liddle

Letter’’); W. Hardy Callcott, Vice President and

Deputy General Counsel, Charles Schwab

(‘‘Schwab’’), to Jonathan G. Katz, Secretary,

Commission, dated January 6, 1997 [sic] (‘‘Schwab

Letter’’); William J. Fitzpatrick, Attorney, to

Secretary, Commission, dated January 8, 1997 [sic]

(‘‘Fitzpatrick Letter’’); Stuart J. Kaswell, Senior Vice

President and General Counsel, Securities Industry

Association (‘‘SIA’’), to Jonathan G. Katz, Secretary,

Commission, dated January 13, 1998 (‘‘SIA Letter’’);

Helen Norton, Director, Equal Opportunity

Programs, Women’s Legal Defense Fund (‘‘WLDF’’),

to Jonathan G. Katz, Secretary, Commission, dated

January 7, 1998 (‘‘WLDF Letter’’); Cliff Palefsky,

Chair, Securities Industry Arbitration Committee,

National Employment Lawyers Association

(‘‘NELA’’), to Secretary, Commission, dated January

6, 1998 (‘‘NELA Letter’’); and George A. Schieren,

Senior Vice President and General Counsel, Merrill

Lynch, to Jonathan G. Katz, Secretary, Commission,

dated January 16, 1998 (‘‘Merrill Letter’’).

4Letter from Jean I. Feeney, Attorney, NASD

Regulation, to Katherine A. England, Assistant

Director, Market Regulation, Commission, dated

April 14, 1998. Amendment No 2 amends the

language of the proposed rule change in Section

10201(b) of the code to state ‘‘A claim alleging

employment discrimination, including a sexual

harassment claim, [or sexual harassment] in

violation of a statute is not required to be

arbitrated.’’ Amendment No. 2 also amends the

effective date of the proposed rule change to

January 1, 1999. In addition, Amendment No. 2

responds to the comment letters.

5 17 CFR 240.15b7–1. The rule provides as

follows:

No registered broker or dealer shall effect any

transaction in, or induce the purchase or sale of,

any security unless any natural person associated

with such broker or dealer who effects or is

involved in effecting such transaction is registered

or approved in accordance with the standards of

training, experience, competence, and other

qualification standards (including but not limited to

submitting and maintaining all required forms,

paying all required fees, and passing any required

examinations) established by the rules of any

national securities exchange or national securities

association of which such broker or dealer is a

member or under the rules of the Municipal

Securities Rulemaking Board (if it is subject to the

rules of that organization).

Treasury securities as the underlying

instrument.8 Currently, repurchase

agreement transactions constitute the

majority of the transactions cleared by

DCC.

As a part of its temporary registration,

DCC was granted a temporary

exemption from the requirements of

Section 17A(b)(3)(C),9 which requires

that the rules of a clearing agency assure

the fair representation of its

shareholders or members and

participants in the selection of its

directors and administration of its

affairs. While Commission staff and

DCC staff have had ongoing discussions

on DCC’s proposed method of

complying with Section 17A(b)(3)(C),

the Commission believes that the issue

of DCC’s compliance with the fair

representation requirements should be

completely resolved before DCC

receives permanent registration as a

clearing agency under Section 17A(b) of

the Act.10

In light of DCC’s past performance,

the Commission believes that DCC

complies with the statutory

prerequisites for registration as a

clearing agency contained in Section

17A(b)(3) of the Act except for the fair

representation requirement discussed

above.11 Therefore, the Commission

believes that DCC should continue to be

registered on a temporary basis.

Comments received during DCC’s

temporary registration will be

considered in determining whether DCC

should receive permanent registration as

a clearing agency.

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing

application. Persons making written

submissions should file six copies

thereof with the Secretary, Securities

and Exchange Commission, 450 Fifth

Street, NW., Washington, DC 20549.

Copies of the application and all written

comments will be available for

inspection and copying at the

Commission’s Public Reference Room

450 Fifth Street, NW., Washington, DC

20549. All submissions should refer to

the File No. 600–24 and should be

submitted by July 29, 1998.

It is therefore ordered, pursuant to

Section 19(a) of the Act, that DCC’s

registration as a clearing agency (File

No. 600–24) be and hereby is

temporarily approved through July 31,

1999.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–17234 Filed 6–26–98; 8:45 am]

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[Release No. 34–40109; File No. SR–NASD–

97–77]

Self-Regulatory Organizations;

National Association of Securities

Dealers, Inc.; Order Granting Approval

to Proposed Rule Change Relating to

the Arbitration of Employment

Discrimination Claims

June 22, 1998.

I. Introduction

On October 17, 1997, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’), by and

through its wholly owned subsidiary

NASD Regulation, submitted to the

Securities and Exchange Commission

(‘‘Commission’’), pursuant to Section

19(b)1) of the Securities Exchange Act of

1934 (‘‘Act’’) 1 and Rule 19b–4

thereunder,2 a proposed rule change to

amend Rule 10201 of the NASD’s Code

of Arbitration Procedure (‘‘Code’’) to

remove the requirement to arbitrate

statutory claims of employment

discrimination.

Notice of the proposed rule change,

together with the substance of the

proposal, was published for comment in

Securities Exchange Act Release No

39421 (December 10, 1997), 62 FR

66164 (December 17, 1997). Nine

comment letters were received on the

proposal.3 NASD Regulation

subsequently filed Amendment No. 2 to

the proposed rule filing on April 15,

1998.4

II. Description

The proposed rule change will modify

the current requirement that associated

persons arbitrate all disputes arising out

of their employment or termination of

employment with a member broker/

dealer. The proposed rule provides that

associated persons are no longer

required, solely by virtue of their

association or their registration with the

NASD, to arbitrate claims of statutory

employment discrimination. Associated

persons still will be required to arbitrate

other employment-related claims, as

well as any business-related claims

involving investors or other persons.

Background

The requirement for associated

persons to register with the NASD arises

from Section 15A(g)(3)(B) of the Act,

which provides that the NASD may

‘‘require a natural person associated

with a member, or any class of such

natural persons, to be registered with

the association in accordance with

procedures so established [by the rules

of the association].’’ The registration

requirement for associated persons who

effect securities transactions was made

mandatory by Rule 15b7–1 under the

Act in 1993.5 The NASD, other selfregulatory organizations (‘‘SROs’’), and